Belize Axes Stamp And Enterntainment Taxes

by Leroy Baker, Tax-News.com, New York

16 August 2006

The government of Belize has announced that Stamp Duty on receipts and the Entertainment Tax have been repealed.

In an announcement by the Ministry of Finance last week, the public and businesses were notified that section 62 of the Stamp Duties Act, which requires a ten cent stamp to be placed on every receipt for payment of ten dollars or more, has been repealed as as from 1st July, 2006, the date when the General Sales Tax came into force. This is in accordance with section 100 of the GST Act.

The change means that no stamp needs to be placed on receipts for payment of money, irrespective of the amount involved.

However, if a receipt is issued in respect of payment for goods or services supplied before 1st July 2006, the stamp duty of ten cents on such receipts will remain payable.

Meanwhile, the Entertainment Tax Act has also been repealed with effect from 1st July 2006. This is in accordance with section 99 of the GST Act. Entertainment tax which had become due before 1st July 2006 will also remain payable.

"All Government departments, public statutory bodies, financial institutions, utility companies and other business establishments are asked to take note of these changes in the law and act accordingly," the Ministry's announcement explained.

The abolition of stamp duty on receipts and the repeal of the Entertainment Tax Act are in part-fulfilment of the tax reform measures promised by the Government at the time of passage of the GST Act to reform the tax structure and relieve the taxpayer of small taxes and duties.

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